Can I retire at age 40 with 875,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator

About Your Retirement ?

Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:

Portfolio ?

% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $875,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13.7%
1 years$72,257$71,613$70,985$70,372$69,774$68,703
2 years$35,771$35,104$34,459$33,833$33,226$32,149
3 years$23,610$22,941$22,297$21,677$21,080$20,031
4 years$17,531$16,864$16,227$15,617$15,034$14,022
5 years$13,885$13,222$12,593$11,995$11,429$10,456
6 years$11,455$10,797$10,177$9,593$9,043$8,110
7 years$9,719$9,067$8,457$7,887$7,355$6,462
8 years$8,419$7,772$7,172$6,616$6,101$5,249
9 years$7,407$6,767$6,177$5,635$5,138$4,326
10 years$6,599$5,965$5,385$4,858$4,378$3,605
11 years$5,938$5,310$4,741$4,228$3,765$3,031
12 years$5,387$4,766$4,208$3,708$3,263$2,566
13 years$4,922$4,307$3,759$3,274$2,845$2,185
14 years$4,523$3,915$3,378$2,906$2,494$1,870
15 years$4,178$3,576$3,050$2,592$2,196$1,606
16 years$3,877$3,281$2,765$2,321$1,941$1,384
17 years$3,611$3,022$2,516$2,085$1,721$1,196
18 years$3,375$2,792$2,297$1,879$1,530$1,036
19 years$3,164$2,588$2,103$1,698$1,364$899
20 years$2,974$2,405$1,930$1,538$1,218$782
21 years$2,802$2,240$1,775$1,396$1,090$681
22 years$2,647$2,091$1,636$1,269$977$594
23 years$2,505$1,956$1,510$1,156$877$518
24 years$2,375$1,832$1,397$1,054$788$453
25 years$2,256$1,720$1,294$963$709$396
26 years$2,146$1,616$1,200$880$639$346
27 years$2,044$1,521$1,114$806$576$303
28 years$1,950$1,433$1,036$738$520$266
29 years$1,863$1,352$964$677$469$233
30 years$1,781$1,277$898$621$424$204
31 years$1,705$1,207$837$571$383$179
32 years$1,634$1,142$781$524$347$157
33 years$1,567$1,082$729$482$314$138
34 years$1,504$1,025$681$444$284$121
35 years$1,445$972$637$408$257$106
36 years$1,390$923$596$376$233$93
37 years$1,337$877$558$347$211$82
38 years$1,288$833$522$319$192$72
39 years$1,241$792$489$295$174$63
40 years$1,196$754$459$272$158$56
41 years$1,154$717$430$251$143$49
42 years$1,114$683$403$231$130$43
43 years$1,076$651$379$214$118$38
44 years$1,040$620$355$197$107$33
45 years$1,005$592$334$182$97$29
46 years$972$564$313$168$88$26
47 years$941$539$294$155$80$23
48 years$911$514$277$144$73$20
49 years$882$491$260$133$66$17
50 years$854$469$244$123$60$15

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $875,000, adding $6,168 every year, while hoping to spend $40,871 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 56/32/12 Blend
39$875,000$875,000$875,000$875,000
40$970,612$924,237$910,675$1,021,685
41$1,026,128$926,038$897,696$1,058,770
42$1,085,937$926,558$882,913$1,094,125
43$1,150,434$925,690$866,221$1,131,674
44$1,220,051$923,322$847,513$1,171,634
45$1,295,266$919,335$826,674$1,214,243
46$1,376,602$913,602$803,587$1,259,769
47$1,464,635$905,988$778,127$1,308,505
48$1,559,998$896,351$750,163$1,360,779
49$1,663,385$884,539$719,562$1,416,952
50$1,775,563$870,394$686,179$1,477,425
51$1,897,371$853,744$649,867$1,542,642
52$2,029,736$834,411$610,471$1,613,095
53$2,173,676$812,204$567,828$1,689,328
54$2,330,310$786,921$521,769$1,771,944
55$2,500,871$758,349$472,118$1,861,609
56$2,686,714$726,263$418,688$1,959,062
57$2,889,332$690,423$361,287$2,065,119
58$3,110,367$650,577$299,714$2,180,685
59$3,351,627$606,457$233,756$2,306,760
60$3,615,101$557,782$163,196$2,444,449
61$3,902,980$504,252$87,802$2,594,976
62$4,217,676$445,553$7,335$2,759,693
63$4,561,844$381,350$0$2,940,096
64$4,938,407$311,290$0$3,147,895
65$5,350,583$235,003$0$3,376,517
66$5,801,918$152,093$0$3,627,078
67$6,296,315$62,147$0$3,901,846
68$6,838,072$0$0$4,203,328
69$7,431,924$0$0$4,546,711
70$8,083,085$0$0$4,947,305
71$8,797,296$0$0$5,386,770
72$9,580,884$0$0$5,869,007
73$10,440,815$0$0$6,398,316
74$11,384,763$0$0$6,979,431
75$12,421,182$0$0$7,617,566
76$13,559,384$0$0$8,318,468
77$14,809,626$0$0$9,088,464
78$16,183,210$0$0$9,934,528
79$17,692,583$0$0$10,864,341
80$19,351,462$0$0$11,886,363
81$21,174,954$0$0$13,009,919
82$23,179,706$0$0$14,245,278
83$25,384,058$0$0$15,603,757
84$27,808,214$0$0$17,097,823
85$30,474,436$0$0$18,741,212
86$33,407,251$0$0$20,549,057
87$36,633,682$0$0$22,538,035
88$40,183,504$0$0$24,726,517
89$44,089,524$0$0$27,134,747
90$48,387,887$0$0$29,785,029
91$53,118,423$0$0$32,701,940
92$58,325,014$0$0$35,912,559
93$64,056,017$0$0$39,446,724
94$70,364,709$0$0$43,337,313
95$77,309,801$0$0$47,620,554
96$84,955,980$0$0$52,336,365
97$93,374,527$0$0$57,528,731
98$102,643,987$0$0$63,246,122
99$112,850,908$0$0$69,541,944
100$124,090,657$0$0$76,475,050